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Mismatched Payment Swap


A swap agreement that entails the exchange of two payment types at different times and/or at different intervals. In other words, payment streams are not exchanged on the same date, but rather are mismatched. For example, the floating rate is payable semi-annually while the fixed rate is payable quarterly.

As such, the mismatch between what is paid and received exposes one party or both parties to counterparty risk (settlement risk).



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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